Remuneration – the monetary value

What is a remuneration increase worth to me in the first year?

The Bargaining Policy allows for remuneration increases to be negotiated up to an average of 2% per annum (pa). A 2% pa wage increase will be worth different amounts to different people. However, as a simple guide we have used the median1 base salary from the 2015 APS Remuneration Report.

Table 1: Annual and fortnightly values of a 2% increase across classifications

Classification

Base Salary Median*$

2% increase (annual)*$

2% increase (fortnight)*$

*Figures in the table are before tax

Graduate

60,158

1,203

46.13

APS 1

47,736

955

36.60

APS 2

54,588

1,092

41.86

APS 3

61,512

1,230

47.17

APS 4

69,239

1,385

53.09

APS 5

74,458

1,489

57.09

APS 6

86,923

1,738

66.65

EL 1

108,382

2,168

83.10

EL 2

133,905

2,678

102.67

What is a 6% remuneration increase worth over a three year agreement?

There is an accumulating effect with subsequent wage increases. Based on the figures provided in Table 1, a 2% pa wage increase for three years for an APS 5 would give them the following new money:

Table 2: 6% increase before tax for an APS 5 over a three year agreement

Wage increase

Year 1

Year 2*

Year 3*

Total

*Year 2 and 3 have a compounding effect** The final salary for the APS 5 would be $79,015

2% on commencement

$1,489

$1,489

$1,489

$4,467

2% 12 months from commencement

$1,519

$1,519

$3,038

2% 24 months from commencement

$1,549

$1,549

Total received over three years**

$9,054

What else does a remuneration increase affect?

Depending on your workplace agreement, remuneration increases also increase salary-related allowances such as fire warden, first aid and harassment contact officer allowances. In most circumstances, salary-related allowances will count for superannuation purposes. A change in base salary has the greatest flow-on accumulative effect on superannuation contributions.

1 The median is the midpoint of all values. It is the point where 50% of values are above and 50% of values are below.

Asset ID: #89842

About the Commission

The Australian Public Service Commission (APSC) is a central agency within the Prime Minister and Cabinet portfolio. The Commission supports two statutory office holders: the Australian Public Service Commissioner—who is also agency head—and the Merit Protection Commissioner. Their functions are set out in sections 41(1) and 50(1), respectively, of the Public Service Act 1999.